TORONTO, May 2 (Reuters) - Canada's top life insurer,
Manulife Financial Corp, reported a 56 percent drop in
profit in the first quarter, while earnings at rival Great-West
Lifeco Inc rose 15 percent as both companies met
expectations in a tough market.

Shares of the two insurers were higher in midday trade on
Thursday as investors took the results in stride, accustomed to
wild swings in Canadian insurers' results over the past five
years as volatile stock and bond markets have roiled asset
values.

Toronto-based Manulife cited weaker life insurance sales and
less favorable market conditions for the big drop in its
quarterly earnings.

Net income fell to C$540 million ($535.63 million), or 28
Canadian cents a share, from C$1.22 billion, or 63 Canadian
cents a share, a year earlier.

Manulife's insurance sales dropped 23 percent due to tax
changes and the impact of higher prices, but the main weight on
its earnings came from continued low interest rates and volatile
equity markets.

Manulife said market movements stripped C$208 million from
its bottom line. In the year-earlier period, stronger markets
added C$75 million to its profit.
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